BYD, KG Mobility to build S Korean battery pack plant
Major Chinese new energy vehicle and lithium-ion battery manufacturer BYD on 2 October agreed a deal with South Korean auto producer KG Mobility to jointly develop a battery pack plant and next-generation hybrid systems.
The battery packs will be installed in some of KG Mobility's electric vehicle (EV) models poised to be in mass production in the second half of 2024 before being expanded to more future models, according to KG Mobility, previously known as Ssangyong Motor. Production capacity, timelines and investment in the planned South Korean battery pack plant were undisclosed.
KG Mobility's total sales in October fell by 51.3pc from a year earlier to 6,421 units because of weaker domestic sales and consumer sentiment.
South Korea is planning to push export expansion projects in sectors such as EVs, secondary batteries and hydrogen on the back of a prolonged export downturn, the country's trade and industry ministry said in October.
The nation's manufacturing activity continued contracting in October, extending its streak to 16 consecutive months. South Korea's latest purchasing manager index (PMI), compiled by S&P Global, dipped slightly to 49.8 in October from 49.9 in September. A PMI reading above 50 points to an expansion in activity, while a reading below that level suggests a contraction.
South Korean Nonghyup Bank this month agreed to provide 1 trillion won ($757mn) of financial support through corporate loans and payment guarantees over the next three years to South Korean battery manufacturer SK On, which the producer said will strengthen its competitiveness.
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Batteries, oil reserves top Korea’s trade budget focus
Batteries, oil reserves top Korea’s trade budget focus
Singapore, 28 August (Argus) — South Korea's trade, industry and energy ministry (Motie) today announced its 2025 budget proposal, which has a focus on fostering high-tech industries such as batteries and semiconductors, and bolstering oil reserves. Other key areas include ensuring reserves of key metals, as well as expanding low-carbon energy. Motie's proposed 2025 budget totals W11.5 trillion ($8.6bn), up by 0.2pc or W21.8bn from the previous year. The budget proposal will be submitted to the National Assembly in early September for approval and will be confirmed in December. High-tech industries Motie will expand funding for developing high-tech strategic industries such as semiconductors and secondary batteries by 17pc to W2.09 trillion in 2025. The ministry will extend support totalling W31.2bn to further develop battery management system technology and infrastructure to assess the safety of electric vehicle (EV) batteries, with the ministry citing recent heightened safety concerns following multiple fires involving EVs. The incidents had prompted domestic EV manufacturers to disclose otherwise confidential battery information. Resource security Motie will raise funding to boost economic security by 1.4pc to W1.85 trillion in 2025, which includes developing resources, as well as bolstering stockpiles of oil and key minerals. Of the W1.85 trillion, investment in developing oil fields will rise by 5.2pc to W50.6bn. This includes funds to support the first exploration drilling in the deep-sea gas field in the east sea , with results expected by the first half of 2025. The country plans to invest W79.9bn in 2025, up by 20pc from 2024, in oil storage, and to expand oil reserves to over 100mn bl. Stockpiling of key minerals such as lithium, cobalt and rare earth elements will continue, but the South Korean government is shifting its focus to building and maintaining stockpile infrastructure given stable mineral prices. Its budget for key minerals stockpiling will be lowered by 58pc from this year's W233.1bn to W96.9bn for 2025, but the allocated budget for construction and maintenance will surge by over sixfold to W116.3bn from this year's W18.7bn. The country will also support concluding supply deals for urea and further develop technology to cut import dependence. Low-carbon energy Motie's "carbon-free" energy budget is largely focused on developing the nuclear power industry as a key export driver, with W11.6bn allocated. The Czech government in July selected Korea Hydro and Nuclear Power (KHNP) as the preferred bidder for the installation of two nuclear reactors at the site of its 2GW Dukovany power plant, although US nuclear developer Westinghouse and French utility EdF are challenging the tender results . The government is also extending W198.4bn in funds to expand renewable energy supply. Of this, W42bn will be allocated to support low-carbon energy projects, which Motie expects to attract funding of up to W525bn in the renewable energy market. By Tng Yong Li and Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mine developer signs new deal for potential refinery
Mine developer signs new deal for potential refinery
Houston, 22 August (Argus) — Canada-based mine developer Fortune Minerals entered into a new option agreement with JFSL Field Services to purchase a brownfield industrial site to build a refinery that would turn out cobalt, bismuth and copper products. Fortune can acquire the property in Alberta's Lamont County by paying C$6mn ($4.4mn) before November 2025, the company said this week. It must make monthly payments of C$100,000 that will go toward the purchase price, as a condition of the deal. Fortune has paid JFSL a little more than C$1.4mn for the site so far, and that total will be deducted from the overall purchase price as well. The two had entered into a previous option agreement that expired in July after being extended more than once. JFSL will be allowed to market the site to other prospective buyers during the option period, but Fortune will have a 90-day right of first refusal to match any offer. Additionally, JFSL has the right to continue using the property and its existing facilities for 18 months following a sale to Fortune. Fortune touts that the 77-acre property, which previously contained a steel fabrication plant, is near rail lines, reagents key to the potential refinery's function and skilled labor from the existing petrochemicals industry in the area. Fortune expects to refine concentrates from its NICO critical minerals project in the Northwest Territories into 8,780 metric tonnes/yr of cobalt sulphate, 1,700 t/yr of bismuth ingots and 300 t/yr of copper in cement precipitate. Fortune also has a collaboration in place to potentially extract cobalt and bismuth from waste streams from mining conglomerate Rio Tinto's smelter in Utah that pulls ore from its Kennecott copper mine. Development of the mine, which is anticipated to utilize open-pit and underground mining methods, has yet to begin with Fortune awaiting a final project construction decision. Fortune received federal funding from both the Canadian and US governments to complete a new feasibility study and other work that is needed before that determination can be made. That process is expected to take 20 months. Fortune also still needs to line up construction financing for the mine and refinery, which are estimated to cost C$770mn. It predicts establishing the mine would take two years, while the refinery would take 18 months. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sibanye scraps supply deal at Sandouville Ni refinery
Sibanye scraps supply deal at Sandouville Ni refinery
London, 22 August (Argus) — South African multi-metals mining group Sibanye-Stillwater announced yesterday that it is scrapping a key supply agreement for its Sandouville nickel refinery in France as it repurposes the plant to produce precursor cathode active material (pCAM) for the European battery market. The termination will be completed on or before 31 December, the group said. Sibanye-Stillwater expects to incur costs of $37mn from the termination, with refining from inventory and sales expected to continue until the first quarter of 2025. The refinery, acquired from Eramet in 2022, will shift from producing nickel sulphate to producing pCAM after a scoping study yielded positive results. A final decision on pCAM production depends on a feasibility study now in progress. The pivot, called the GalliCam project, aims to use mixed hydroxide precipitate (MHP) instead of the nickel matte now in use. Sibanye intends to use MHP in a chloride medium, which it said would lead to fewer production steps, lower energy consumption, reduced carbon emissions, and fewer waste products. It filed a patent application for this chloride-MHP process in July. A small-scale pCAM precipitation pilot is under way at Sandouville, the group said, with testing due to begin from the end of the third quarter. By Raghav Jain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ford cancels eSUV, delays electric truck
Ford cancels eSUV, delays electric truck
Houston, 21 August (Argus) — US automaker Ford Motor updated its electric vehicle (EV) strategy, canceling its planned three-row electric SUV and delaying the production of a next-generation all-electric pickup truck until 2027. The three-row SUV had already been delayed to 2027, but with its cancellation, Ford will now pivot to producing new gas and hybrid-powered three-row SUVs, the company said today. This decision could potentially cost the company $1.5bn in expenses, including a special non-cash charge of $400mn. The automaker will reduce its EV spending from 40pc to 30pc of its annual capital expenditures. The next-generation electric truck, known as Project T3, will be delayed, with production now scheduled for the second half of 2027 instead of 2025. Despite the 18-month delay, Ford's Tennessee EV facility will still assemble the vehicle. Ford will also prioritize a new commercial EV van that will begin production at its Ohio plant in 2026. Additionally, the company is working on a more affordable EV in one of its skunkworks labs in Irvine, California. This project will produce a medium-sized pickup truck. These shifts come after slower than expected EV adoption and difficulties in making EVs profitable. Ford reported significant costs related to ramping up EV production as industry sales growth slows. Ford disclosed that it expects its EV business to lose between $5bn-5.5bn for the year. By Jasmine Palacios Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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